Sugs Lloyd IPO Closes with Strong Investor Demand Across Categories on Final Day

New Delhi, September 2, 2025 – The Sugs Lloyd Limited IPO closed today with huge investor response by categories, topped by high net-worth individuals (HNIs) and strong retail participation, while Qualified Institutional Buyers (QIBs) also participated on the final day.

Established in 2009, Sugs Lloyd Limited has business operations in renewable energy (solar EPC), electrical EPC, and civil EPC projects, as well as manpower and outage management solutions for state distribution companies (DISCOMs). The IPO is promoted by Mrs. Priti Shah and Mr. Santosh Kumar Shah.

Final Day Demand Snapshot 

Sugs Lloyd’s IPO saw robust investor interest on the last day, with cumulative bids totalling 2.04 crore shares against available 65.58 lakh shares, data from BSE showed. Subscription numbers indicated good demand across all categories.

Qualified Institutional Buyers (QIBs) bid for 5.78 lakh shares against an allotment of 2.85 lakh shares, led by a modest batch of three applications. Non-Institutional Investors (HNIs) dominated the demand, making offers for 1.19 crore shares, almost five times the 25.35 lakh shares available to them.

Retail Individual Investors (RIIs) also demonstrated robust interest, offering bids for 79.10 lakh shares against the 37.38 lakh shares on offer, through almost 4,000 applications. The issue as a whole received 5,602 applications, closing at more than three times the subscription, with retail investors and HNIs powering most of the demand.

Price Discovery

Bidding was spread across the price range, although investor preference was for the higher end of ₹123. On the floor price of ₹117, bids were at 2.04 crore shares, and demand continued to be almost uniform across subsequent levels, slightly reducing as price levels went higher. Both the ₹122 and ₹123 levels received 2.03 crore bids each, and this is a reflection of hungry demand even at the top price.

This trend indicates that investors were largely comfortable with valuations at the higher end of the band, pointing towards potential price discovery closer to ₹123.

Anchor Investor Allocation

Sugs Lloyd raised ₹4.99 crore from anchor investors before its public offering by issuing 4.06 lakh shares at ₹123 per share. Two investors participated in the anchor book, highlighting early institutional faith in the issue.

• NAV Capital VCC – NAV Capital Emerging Star Fund allotted 2.44 lakh shares, which is equal to an allocation of ₹3 crore.
• Raghunandan Capital Securities Pvt Ltd was allotted 1.62 lakh shares for ₹1.99 crore.

The two investors contributed the entire anchor allotment, giving a good start to the subscription process.

Key Risks Highlighted

• Excessive dependence on government orders (93% of FY25 revenues).
• High client focus (ownership by top 10 customers accounted for ~88% of FY25 revenue).
• Negative operating cash flows FY23–25.
• Highest borrowings of over ₹74 crore.
• Execution risk associated with a ₹299 crore order book.

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